A New Year resolution- get the right cover

The start of a new year is a great time for reflection and there are issues in our industry that are worth some thought –underinsurance and business interruption. So, how can we all support your clients to protect their worlds?

2019 will see a lot of change and this could have a deep impact on businesses. From changes to their supply chain to potential tariffs and uncertain exchange rates. We need to understand the changes happening inside these businesses and if these changes have led to an issue with underinsurance or business interruption. It means we can make sure they have the right level of insurance to truly meet their business needs. So, what should you be asking your clients?

Underinsurance

Have they changed their business description or taken on any new activities?

Are they stockpiling goods now and / or taken on new premises for storage?

What impact has the devaluation of sterling had over the past 2 years?- Buying in goods or machinery from overseas is now more expensive - are their sums insured reflecting these changes?- Exporting goods has become more competitive – has this opened more opportunities to export? What countries are they exporting to? What percentage of turnover does this represent, and do they have a high enough indemnity limit under Products Liability?

Have the premises been valued in the last 3 years?

Have the premises been altered or extended?

Have costs been factored in for gates, fences or car parking areas?

Have demolition, debris removal, or asbestos removal costs been taken in account?

Does their sum insured include outbuildings, mezzanines and foundations?

Has the replacement of services such as gas, electric, fibre optics, surface water drainage, security and risk management equipment been included?

Does their sum insured consider the costs for professional fees such as a surveyor or architect? Professional fees usually account for 12-15% of total building costs.

Are the premises listed or in a local conservation area?

What’s the access to the premises like?

Business Interruption

Have they made any changes to their supply chain?

What’s the availability of materials to replace buildings, machinery and contents and where are they sourced from?

Have they considered set up time and training costs for new machinery or new programming for new computers?

What’s the impact now and in the future of import tariffs, currency fluctuations and delivery costs?

How can Aviva help?

We have a variety of tools and solutions across our commercial small business and Mid-Market products - from our Business Interruption Calculator to product enhancements on Fast Trade to tackle underinsurance. Plus, we’re always looking at new ways to support you and your clients. To find out more, speak to your usual underwriter or Aviva sales manager.